ce was further slowed by World War II, but this was the last time at which it lagged (Khouja and Sadler, 1979). Since World War II, oil has been the primary focus of the Kuwait economy, providing the ruling families with great wealth and the other denizens of Kuwait with a supportive social welfare state.
Crystal (1992, 1994) traced the development of the oil industry in Kuwait, noting that it initially depended upon the British who had gained control of much of Kuwait's foreign policy through the 1899 treaty. During the 1930s, however, the British joined forces with Gulf Oil, and it was the United States and Great Britain who provided the funds and expertise to locate and produce oil.
However, the Kuwait government increasingly sought both money and involvement in the oil industry. This was largely denied to it by the British and the United States (Crystal, 1992). As a consequence, Kuwait itself decided to enter the oil industry, creating the Kuwait National Petroleum Company (KNPC). During the mid 1970s, the government comple
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